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What: Shares of Velti (NAS: VELT) have tumbled today by as much as 28% after the company reported earnings.
So what: First-quarter revenue grew 75% to $51.8 million, which generated an adjusted net loss of $1.1 million, or $0.02 per share. CEO Alex Moukas said the company continues to build its mobile marketing business and that 2012 should be a strong year. Velti also increased its full-year guidance.
Now what: During the quarter, Velti completed the acquisition of the remaining equity ownership interest of the parent company of CASEE, a mobile ad exchange and network in China. Next quarter should see revenue between $55 million-$59 million, and Velti raised its full-year revenue outlook to a range of $283 million-$296 million. It's not entirely clear what investors are so disappointed with, and Needham & Company is reiterating its "buy" rating and $20 price target, citing strong performance across all geographies.
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